Sotheby: “Demand For High Priced Shacks Is Unbelievable”

It sounds like Sotheby’s International Realty Canada could be a junk dealer of late because according to them, real estate priced at $1 million is considered as HIGH END …

Demand for High-End Real Estate in Calgary Remains High According to Sotheby’s International Realty Canada’s Top-Tier Report

CALGARY, ALBERTA–(Marketwired – July 8, 2013) – Calgary’s high-end residential real estate market continues to display strong market fundamentals, setting records in the first half of 2013. According to the latest report released by Sotheby’s International Realty Canada, Calgary’s high-end market has experienced both a steady rise in sales volume over $1 million and a strong decline in days on market for key segments compared to 2012.

According to the Top-Tier Real Estate Report, which analyzes year-over-year data for single family, attached and condominium properties over $1 million, Calgary saw 388 sales over $1 million between January 1 and June 30, 2013, representing a 75% increase from July to December 2012 and a 10% increase over the same period in 2012. Highlights of the first half of 2013 showed the attached home market gaining the most in sales volume, increasing 217% over the last half of 2012. Single family home sales over $1 million also continued their upward rise with a 67% increase from the latter half of 2012 and a 10% increase from January 1 to June 30, 2012. Condominium sales volume also grew by 58% in the $1 million price segment compared to the last half of 2012, but remained 37% lower than the same period last year.

Condominiums $1 Million+

The Calgary condo market demonstrated steady growth from the latter half of 2012. Properties between $1-2 million represented the greatest sales volume in the high end within the past six months with 14 condos sold. Properties between $2-4 million also saw a 150% increase in units sold, compared to July to December 2012. Condo sales over $4 million remained quiet with no change in volume or days on market compared to the last half of 2012. In the first half of 2013, a total of 19 condominiums sold over the $1 million mark in the first half of the year, reflecting a 58% increase compared to the latter half of 2012 and 37% decline compared to January 1 to June 30, 2012.

Attached Homes $1 Million+

The high-end attached homes market has been heavily driven by properties in the $1-2 million category. The number of sales in this price category increased by 217% to 38 units within the past six months and sales increased by 73% for this category when compared to the same period last year. With nearly 15% of sales going above the list price and the number of days on market continuing to decline, it’s evident that demand for attached homes within this price segment is on an upward trajectory.

Single Family Homes $1 Million+

The first half of 2013 has seen the high-end market for single family homes over $1 million increase. Compared to the latter half of 2012, sales of homes $1-2 million increased by 69% to 291 units and sales of homes $2-4 million also increased by 65% to 38 units.

In the first half of 2013, the percentage of homes that sold over the list price compared to the latter half of 2012 remained relatively stable: 4% of homes between $1-2 million and 3% of homes between $2-4 million sold over asking. The average number of days on market dropped to 50 days for $1-2 million homes and 67 days for $2-4 million homes, while homes of $4 million or more increased to 89 days.

According to Sotheby’s International Realty Canada CEO, Ross McCredie, “The first half of 2013 saw positive growth within the Calgary market, and we remain optimistic that this momentum will continue into the latter half of the year.”